A key investment indicator used by legendary investor Warren Buffett is flashing warning signals that Japanese stocks are in bubble territory once again.
The latest figures coming out of Japan show the stockmarket has surged even though the country's economy contracted by 1.6% in the second quarter on an annualised basis. The ratio of market capitalisation to share price is one of Buffett's (pictured) favourite indicators - in 2001 he told Fortune that the metric is the best single measure for judging market valuations at any given moment. Recent figures from Japan mean that the ratio has now been over 100% for the country over three successive quarters and in the second quarter the ratio was 117%, according to Bloomberg. The stockm...
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